4.16 Provisions, Contingent Liabilities and contingent assets:
The Company estimates the provisions that have present obligations as a result of past events, and it is probable
that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of
each reporting period and are adjusted to reflect the current best estimates.
The Company uses significant judgements to disclose contingent liabilities. Contingent liabilities are disclosed
when there is a possible Obligation arising from past events, the existence of which will be confirmed only by
the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the
Company or a present obligation that arises from past events where it is either not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.
Contingent assets are neither recognised nor disclosed in the financial statements
4.17 Segment Reporting
The Company at present is engaged in the business of a single primary reportable business segment i.e. business
of manufacturing, trading and marketing of the rice only.
4.18 Borrowing Cost
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised during the
period of time that is required to complete and prepare the asset for its intended use or sale. All other borrowing
costs are expensed in the period in which they are incurred. Borrowing costs consist of interest and other
costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange
differences to the extent regarded as an adjustment to the borrowing costs.
Interest and other borrowing costs attributable to qualifying assets are capitalised as a part of such assets till
such time the assets are ready for use. Other interest and borrowing costs are charged to Statement of Profit
and Loss.
4.19 Earning Per Share
Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders
by the weighted average number of equities shares outstanding during the year. Diluted earnings per share is
computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during
the year end, except where the results would be anti-dilutive. The dilutive potential equity shares are adjusted for
the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value
of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of
the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each
period presented.
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods
presented for any share splits and bonus shares issues including for changes effected prior to the approval of
the financial statements by the Board of Directors.
4.20 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit/ loss for the period is adjusted for the effects
of transactions of a non- cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and item of income or expenses associated with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the Company are segregated.
4.21 Dividend
Final dividends on shares are recorded as a liability on the date of paid after approval of equity shareholders in
Annual General Meeting. Interim dividends are recorded as a liability on the date of declaration by the Company's
Board of Directors. The Company declares and pays dividends in Indian rupees and are subject to applicable
taxes..
4.22 Operating cycle
Based on the nature of products / activities of the Company and the normal time between acquisition of assets
and their realisation in cash or cash equivalents, the Group has determined its operating cycle as 12 months for
the purpose of classification of its assets and liabilities as current and noncurrent.
The Company is in the process of evaluating the impact of the above amendments on the Company's financial
statements. ]
Notes to Accounts
1. During the year Company has given remuneration to all the directors including managing director &
Wholetime directors as per section 197 of Companies Act, 2013 read with Schedule V which is within
overall limit as prescribed under Companies Act, 2013 read with Schedule V.
2. Value of Assets as at 21.9.94 the date of Conversion of the firm to the Company under Part IX of the
Companies Act 1956 has been taken at value shown in books of erstwhile firm Chaman Lal & Sons.
3. Gratuity Payable to employees at some future date has been duly provided for by the Company by taking
Group Gratuity Scheme from LIC of India.
4. Stores, Spares and Labour in respect of internally carried out repair and maintenance of Plant and
Machinery and Building have not been charged separately but have been directly charged to stores and
spares consumed and wages account.
5. Confirmation of some of the accounts at year-end included under heads ‘Sundry Debtors’, Sundry
Creditors' and Loans and Advances have yet to be received as at the date of the Auditors Report.
6. Payment against supplies from small scale and ancillary undertakings are generally made in accordance
with agreed credit terms and to the extent ascertained from available information, there was overdue
amount of Rs. 97.06 (Lacs) on account of some quality issues or discount issue.
7 Contingent liabilities as at 31.03.2025
a) There is a Outstanding Demand of Income Tax Amount of Rs 13.84 Lacs For F.Y 2013-14 persuaded
by Income Tax Department But Company has protested the Same and Filed as request for
Rectification.
b) Company's appeal is also pending with Hon'ble Gujrat Haryana High Court against imposition
of penalty by Custom Authorities Kandla amounting Rs 1750000/- on the alleged ground of
containing higher non-Basmati Grain in one of the export lots.
c) M/s PK Overseas has filed suit against company for using Its Brand Name and Claim a Damage of
Rs 11Lacs The Case has not been decided yet.
d) M/s KRBL Limited has filed suit against Company for using Its Brand name but Amount has not
been determined. The Case is Still under Trial.
e) One of the Employee of the Company has filed a case in labour Court for not giving Retirement
benefits . The Case is Still Pending and amount is not Determinable
8. Prior period items if any include Expenses/Income related to previous year not provided for are separately
classified as prior period expenditure/income during the current year in accounts.
9. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of the
current assets' ,loan & advances, deposits in the ordinary course of business will not be less than the
value stated in Balance Sheet.
10. Pursuant to the provisions of Section 124 and 125 of the Companies Act, 2013, the Dividend which remain
unclaimed/ unpaid for a period of seven years from the date of transfer have to the unpaid dividend
account to the Investor Education and Protection Fund (IEPF) established by the Central Government.
11. The status of dividend remaining unclaimed as on 31.03.2025 is given here under:
Note: Some of the year end balances of unclaimed dividend as stated above, has increased due to
cancellation of drafts by bank being returned unpaid.
During the year 2024-2025, Board has recommended dividend of @ 125 % i.e. Rs. 2.50/- per equity share
of face value of Rs.2/- each for the financial year 2024-2025 in the Board Meeting held on 28.05.2025,
subject to approval of shareholders in this 31st Annual General Meeting. Dividend will be paid on & from
22.09.2025.
During the year, pursuant to the provisions of Section 124 and Section 125 of the Companies Act, 2013 and
read with Rule 6 of the Investor Education and Protection Fund Authority (Accounting,Audit,Transfer and
Refund) Rules,2016, (as amended from time to time) (IEPF Rules), final dividend amounting Rs.241371/-
was lying unpaid/unclaimed with the Company for a period of seven years after declaration of Dividend
for the financial year ended 2016-2017 was transferred to the Investor Education and Protection Fund.
The Company has transmitted 26265 Equity Shares on count of unclaimed/ unpaid dividend pertaining
to financial years 2016-17 into the Demat Account of the IEPF Authority held with NSDL (DPID/
ClientIDIN30078/10656671) in terms of the provisions of Section 124(6) of the Companies Act, 2013 and
the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, as amended from time to time.
These Equity Shares were the Shares of such Shareholders whose had been transferred into IEPF and
who have not encashed their dividends for 7 (Seven) vears.
Defined Benefit Plan
The employee's gratuity fund scheme managed by a Trust (Life Insurance Corporation of India) is a
defined benefit plan. The premium as determined by the Trust keeping in view the date of joining, salary
last drawn etc. of the employee's is paid yearly by the Company and debited under the head Employee
Benefit Expenses. During the year 2024-2025 Rs. 382311-/. has been paid to LIC towards groups gratuity
scheme of employees, however last year 2023-2024 Rs. 853058/- has been paid to LIC towards groups
gratuity scheme of employees.
* Mrs. Shweta Setia ceased from Directorship w.e.f 04.11.2024
(iii) Interest on unsecured loans paid to directors during the year@ 9% p.a in the year 2025 is
43332256/-and in the year 2024 was '53416554/-
(iv) IND-AS 33 Earning per share
As there is no potential equity share outstanding and as such the diluted earning Per share
(calculated on weighted number of shares held throughout the year) is same as basic earning per
share.
EPS 2024-2025 = Rs. 20.68
EPS 2023-2024 = Rs. 22.36
(v) Ind-AS-12 Deferred Taxes
In accordance with the Ind-AS-12 the deferred tax has been accounted for during the year ended
31.03.2025 The deferred tax Assets in the first year amounting to Rs.2902273/- been credited to
Revenue Reserve and disclosed separately under current liability and provision. The deferred tax/
liability asset related to current year is Rs 6575000/- and current outstanding as at 31.03.2025 is
Rs 9705595/- (calculated duly incorporating the change in the method of providing for depreciation
from W.D.V. to SLM)
The deferred taxes has arisen only on account of difference in depreciation allowable under Income
Tax Act and as per books.
(i) Ind- AS 108 Segmental Reporting
The Company has only one business segment namely rice. There is no different geographical segment.
13. The provisions of the Industries (Development and Regulation) Act, 1951, relating to licensed capacity are
not applicable to the Company. The installed capacities in metric tones per hour are as under:
Karnal 12 MT Rice per hour.
The installed capacity is as certified by the management and relied upon by the Auditors, being a technical
matter
14. Stores & Spares are charged to Profit & Loss at time of Purchase and no inventory in respect of these is
being maintained.
15. The payment due to SSI unit cannot be confirmed in the absence of information regarding the status of
concerned creditors.
16. The Amount shown under Schedule No-19 being cost of material consumed also included cost of packing
material consumed addition to raw material consumed from this year. The Figures of P.Y Year has been
re-arranged to make comparison more homogeneous and practical.
17. During the year 2022-23 the Company has revalued its land at Rs. 9563.27 lacs. The difference arising
between Cost and market price amounting Rs. 7980.81 lacs has been transferred to Revaluation reserve
as per general accepted principle and accounting standards. The change was necessiated due to huge
difference between cost price of land and market price of land and was to make balance sheet more
meaningful for investors.
18. Disclosure as per the requirement of Section 22 of the Micro, Small and Medium Enterprise Development
Act, 2006:
21. Corporate Social Responsibility (CSR)
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs
to spend at least 2% of its average net profit for the immediately preceding three financial years on
corporate social responsibility (CSR) activities. The unspent CSR obligation has to be transferred either
to a separate bank account of the company or to any fund included in Schedule VII of the Companies
Act, 2013. Unspent amount pertaining to ongoing projects has to be transferred to a separate bank
account of the company called ‘unspent CSR account' and unspent amount pertaining to other than
ongoing projects has to be transferred to any fund included in Schedule VII of the Companies Act, 2013.
The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and
culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural
development projects. A CSR committee has been formed by the Company as per the Act. The funds
were primarily utilized throughout the year on these activities which are specified in Schedule VII of the
Companies Act, 2013:
22. A company has been sanctioned Packing Credit Limit of Rs 150 Cr from Punjab Natioonal Bank CBB
Branch,Amritsar against a collateral security of FDR Amt to Rs 1750 Cr which has lien marked by
Punjab National Bank in his favour.The same FDR shown under current assets under Notes other bank
Balances
23. The Company determined that Change in Depreciation method from WDV to SLM is a Change in
Accounting estimate affected by Change in Accounting Principal. A change in Accounting estimate
affected by Change in Accounting Principal is to be applied prospectively.
A Change is considered preferred because SLM method will more accurately reflect the pattern of
usage and the Expected benefits of such Assets and provide greater Consistency with the Depreciation
method used by other Companies in the same Industry.
The Net book value of Assets acquired prior to 01/04/2024 with Useful life remaining will be depreciated
using the SLM method prospectively.
As a result of Change in Deprecation accounting on Fixed assets Depreciation expense will decrease by
Rs 345.57 in Lacs for the year ended 31.03.2025 and consequently Profit will have an Impact of increase
with similar amount.
24. Previous years figures have been regrouped & rearranged where ever considered necessary
SIGNED IN TERMS OF OUR REPORT OF EVEN DATE For and on behalf of the Board of Directors
for RAJESH Kapoor & CO Sd/- Sd/-
Chartered Accountants RAJEEV SETIA ANKIT SETIA
S,/ Joint Managing Director & Cfo EXECUTIVE DIRECTOR
RAJESH KAPOOR DIN :01125921 D|N:01133822
Proprietor
M.No 092692 Sd/-
kanika nevtia
PLACE : Amritsar Company Secretary
DATE 28.05.2025 M.No 29680
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